New Tax Law Changes

Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.

SCAM ALERT:

Be aware! Scam text messages are circulating, falsely claiming to be from the Michigan Department of Treasury. These fraudulent messages attempt to deceive you into providing or updating your bank account information. Treasury will never text you for sensitive data. If you receive such a message, do not respond, click any links, or share any information. Delete it immediately.

Treasury Taxes

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Withholding Tax Filers

Withholding Tax Filers

Taxpayer Eligibility

The Research and Development (R&D) Tax Credit is available to Withholding Tax filers that meet all of the following conditions:

Are flow-through entities,
Are employers subject to Michigan Withholding Tax,
Incurred Michigan Qualified R&D Expenses (MQREs) during the expense year that exceed their base amount, and
Are not subject to Corporate Income Tax (CIT) or Michigan Business Tax (MBT).

CIT filers must apply for this credit through CIT; they are not eligible for the R&D Tax Credit under Withholding Tax.

The expense year is the calendar year when the MQREs were incurred.

Deadlines and Key Dates

MQREs Incurred: January – December of the expense year
R&D Credit Application Claim Deadline

For expense year 2025: April 1, 2026
For later years: March 15 following the expense year

Proration Notice Expected: April following the expense year
Estimated Offset Period (optional): May – December following the expense year (after the Proration Notice is published)
Tax Return and Final Claim Due: February 28, two calendar years after the expense year, when the eligible business files its annual return for the tax year following the expense year.

Calculate Credit

Offset Credit — Optional

Proration Notice

Special Situations

Third-Party Payroll Providers